Fed policy back on track? - TDS

Research Team at TDS, suggests that the Fed is universally expected to keep policy unchanged at its July meeting.

Key Quotes

“The policy statement should offer a more constructive tone on the near-term economic outlook in light of recent data on the labor market, consumer spending, and housing. Otherwise the language is likely to read stale, exhibiting the Fed's wait-and-see mantra.

While solid domestic demand conditions and accommodative financial conditions alongside recent Fed speak have kept the door open for a rate move by year-end, mixed inflation developments and a higher uncertainty quotient warrant caution, leading the Fed to remain on the sidelines until June 2017.”